During the period, the Group achieved revenue of RMB3,765 million, representing a 43.4% year-on-year increase. Gross profit amounted to RMB1,233 million, with an overall gross profit margin of 32.8%. Profit attributable to owners of the parent company amounted to RMB119 million, while adjusted profit attributable to owners of the parent company amounted to RMB150 million. Both measures turned profitable, reflecting continued improvement in operational efficiency and profitability alongside the expansion of the Group's business scale.
The Group's three major business segments developed in synergy. The API business recorded revenue of RMB464 million, representing a year-on-year increase of 860.8%, and became a key growth driver for the Group. The AI Platform business recorded revenue of RMB3,088 million, representing a year-on-year increase of 30.0%. The Agentic AI business recorded revenue of RMB214 million, representing a year-on-year increase of 4.9%.
Dr. Dai Wenyuan, Founder, Chairman and Chief Executive Officer of Phancy, said: "In the first half of 2026, the Group accelerated revenue growth and further improved profitability, supported by the coordinated development of our AI Platform, API and Agentic AI businesses. The AI Platform continued to strengthen our core business foundation, while the API business delivered breakthrough growth by leveraging the capabilities of the Token Factory, becoming an important growth engine for the Group.
Looking ahead, we will capitalize on the opportunities arising from the large-scale adoption of enterprise AI, apply our technological and operational strengths to deepen synergies between the AI Platform and API businesses, and focus our Agentic AI business on high-value industry applications. We remain committed to maintaining high-quality growth and operational efficiency while creating long-term, sustainable value for our clients and shareholders."
Token Factory Drives Breakthrough Growth in the API Business
During the period, the API business sustained its strong growth momentum and recorded revenue of RMB464 million, representing a year-on-year increase of 860.8%, supported by enhanced Token service capabilities and growing client demand. In the first half of 2026, Token consumption grew by approximately 620% year on year. As of the end of the period, the Group's available computing power resources increased to 28,000 PFLOPS, supporting the expansion of Token service capacity and future development of the API business.
In the first half of 2026, the Group continued to enhance its API service capabilities. As one of the Group's core technology platforms, ModelHub has accumulated more than 200,000 "model x chip" adaptation combinations, creating an increasingly significant scale advantage and enabling the Group to meet growing demand for AI model calls from enterprises and developers in Mainland China and overseas markets.
The "Token Factory" is not a standalone product, but an integrated production and operational framework connecting heterogeneous computing resources, models and enterprise applications. Leveraging core technologies including HAMi vGPU and ModelHub, the Group has established end-to-end capabilities spanning computing resource scheduling, model adaptation, and Token production and delivery, creating a complete value chain from computing resources to Token services and enabling clients to use AI services with greater stability, efficiency and cost-effectiveness.
The Group will continue to optimize the allocation of computing power resources in line with business needs and enhance the production and delivery capabilities of its Token services. As AI adoption expands across a broader range of use cases, the API business is expected to further unlock its growth potential and create increasing commercial value as it scales.
Enterprise Private Deployments Strengthen the AI Platform's Core Business Foundation
During the period, the AI Platform business achieved revenue of RMB3,088 million, representing a year-on-year increase of 30.0%. The Group's orders on hand amounted to approximately RMB7 billion. Supported by broader client coverage, a steady increase in the number of paying clients and growing revenue contributions from major high-quality clients, the AI Platform business maintained steady growth and remained a stable contributor to the Group's revenue.
During the period, the number of paying clients with RISE vGPU, the commercial version of HAMi vGPU, as their primary requirement increased approximately 5-fold year on year. As the adoption of heterogeneous computing resources continues to expand, enterprises' needs for more effective computing power and higher resource utilization efficiency are also increasing, creating further growth opportunities for the Group's related products and services.
As AI applications become increasingly integrated into enterprises' core business processes, clients' requirements for data security, operational autonomy and control, flexible integration and long-term operations continue to increase, highlighting the importance of private deployment of enterprise AI. The Group continues to provide clients across the energy, manufacturing, financial services, retail and telecommunications sectors with full-stack capabilities encompassing unified heterogeneous computing resource management, model adaptation and optimization, and the deployment and operation of enterprise AI applications, supporting clients in expanding AI applications from individual projects to a broader range of business scenarios.
Agentic AI Focuses on High-Value Applications and Explores Result-as-a-Service Model
During the period, the Agentic AI business continued to operate steadily, recording revenue of RMB214 million, representing a year-on-year increase of 4.9%. The Group continued to pursue a focused development strategy, prioritizing investment in industry applications with significant strategic value and the potential to accumulate high-quality, industry-specific data, thereby supporting the long-term development of its business value and industry capabilities.
In terms of its business model, the Group further promoted its result-as-a-service (RaaS) cooperation model in high-value industry applications, including energy and entertainment industries. Rather than simply selling standardized products, the Group works closely with clients throughout their business processes, using AI to reduce costs, improve efficiency and generate incremental revenue. Commercial arrangements are linked to the value actually delivered. As the relevant projects continue to progress, the Group aims to further deepen these client relationships while accumulating real-world industry experience and know-how, creating favorable conditions to further scale the relevant capabilities.
Looking ahead, the Group will continue to maintain a focused approach to investment and prioritize business areas capable of creating long-term client value and economies of scale.
Operational Efficiency and Resource Support Enable Business Expansion
During the period, the Group's research and development (R&D) expenses amounted to RMB1,208 million, up 35.2% year on year, and R&D expense stood at 32.1%. As of the end of the period, the Group had accumulated more than 500 invention patents. The Group continued to focus on strengthening core AI infrastructure capabilities, including HAMi and ModelHub, and further enhanced its capabilities in heterogeneous computing power management, model adaptation and enterprise AI services, supporting the coordinated development of the AI Platform, API and Agentic AI businesses while further enhancing product iteration, client delivery and operational efficiency.
In the first half of the year, the Group strategically increased its computing power resource reserves to support the continued capacity expansion of Token service capacity and meet growing client demand. Capital expenditures amounted to RMB2,237 million. At the same time, the Group had aggregate credit facilities of approximately RMB6,616 million and total borrowings of RMB1,660 million, providing financial support for the deployment of computing power assets and business development. The Group will continue to allocate resources in line with its business development needs and balance capital investment, business growth and profitability.
The Group's selling and marketing expenses amounted to RMB28 million, representing a year-on-year decrease of 85.0%, while selling and marketing expenses as a percentage of revenue decreased to 0.75%, primarily due to increased client recognition and enhanced product capabilities. While maintaining investment in core technologies, the Group will continue to optimize resource allocation and operational efficiency and enhance the quality of business growth.
Dual Growth Engines Driving Long-Term Value Creation
Looking ahead, enterprise AI applications are gradually moving from pilot programs toward large-scale adoption and continuing to expand into a broader range of core business areas. Enterprises' requirements for data security, operational autonomy and control, and deep integration with business processes will continue to drive the development of the private AI Platform deployment market. At the same time, the wider adoption of Agentic AI applications and rapid growth in Token demand are expected to drive continued demand for efficient, stable and scalable Token services.
Leveraging its neutral, full-stack AI capabilities and extensive experience serving enterprise clients, the Group will continue to enhance its technology, delivery and operational capabilities. While maintaining a disciplined approach to operations, the Group will support the steady growth of the AI Platform business, steadily advance the development of the Token Factory and the API business, and focus the Agentic AI business on industry applications with long-term value, creating sustainable value for clients and shareholders.
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About Phancy Group
Phancy Group (6682.HK) is a leading full-stack AI cloud services platform, providing comprehensive solutions for the AI 2.0 era. Our offerings include 4ParadigmSage AIOS, HAMi vGPU and ModelHub XC, delivering efficient and scalable AI infrastructure with end-to-end capabilities. We provide a complete solution from heterogeneous compute resource management and optimization to the deployment of intelligent agent models. These solutions empower digital transformation across a wide range of industries, supporting our vision of building a large-scale and efficient "Token Factory."
Guided by the mission of "AI for Everyone" and positioned as the "Navigator of AI," Phancy Group is committed to becoming a global leader in Artificial General Intelligence.
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